IRS wants data on users from Internet firms

Wednesday, 9 May 2007, 10:23 AM EST

The Center for Democracy and Technology (CDT) is sounding an early warning on a proposal in the president's 2008 budget that would require Internet businesses such as eBay and Amazon.com to collect personal data on their customers and share it with the Internal Revenue Service.

The move is part of an effort by the U.S. Treasury Department to track down unreported small-business income generated by the sale of personal property on such sites. Under the proposal, online "brokers" would be required to file income statements for all customers who use their sites to conduct 100 or more separate transactions that generate $5,000 or more per year.

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